All Government Jobs Are you willing to know the detailed information about the History and Structure of RBI? Here is the article which provides you the Clean and Clear information about the History and Structure of RBI. The RBI(Reserve Bank of India) is also known as Nations Central Bank. According to the bank Dossiers, it began operations on 01-Apr-1935. Prior to Establishment of RBI, the functions of a central bank were Virtually being done by the Imperial Bank of India. RBI act 1934, so it is known as Statutory body. Similarly, SBI is also known as a Statutory body deriving its legality from the SBI Act 1935.
After Independence, the government passed the Reserve Bank Act, 1948 and took over RI from Private shareholders after paying appropriate Compensations. Thus, the nationalization of RBI took place in 1949 and from 1949, and from 01-Jan-1949, RBI started Working as a government-owned Bank.
Hilton Young Commission:-
Hilton Young Commission was the Royal Commission on Indian Currency and Finance which is set up by the British Government of India in the 1920s. In 1926, This commission has recommended to the government to create a central bank in the country. On the basis of mainly this commission, the RBI act was Passed.
Original Headquarters of RBI:-
Original Headquarters of RBI were in Kolkata, but in 1937, it was shifted to Shahid Bhagat Singh Marg, Mumbai.
Structure and Functions of RBI:-
The Crore Structure of RBI includes one central Board of Directors, two Assistive Bodies(BFS and BPSS), Four local boards, 33 departments, 19 Re4gional Offices, and 09 sub-offices.
Main Functions Of RBI:-
- To work as a monetary authority and implement its Monetary policy.
- To serve as an issue of bank notes.
- Serve as banker to central and State Governments.
- Serves as Debt Manager to Central and State Governments.
- Provide Ways and means advances to the State Governments.
- Serve as Banker to the banks and lender of last resort for them.
- Work as Supervisor and regulator of the banking & Financial System.
- Management of Foreign Exchange Reserves of the country.
- Support the government in the development of the country.
Structure and Functions of Central Board of Directors in RBI:-
Central Board of Directors is the top decisions making the body in the RBI. It is made of official directors and Non-official directors.
The Governor and Deputy Governers are the official directors. There are a governor and maximum 4 Deputy Governors, so the maximum number of official Directors in RBIs Central Board of Directors is five. Governor and Deputy Governors are appointed by Central Government. The tenure of service is a maximum of 5 years or till the age of 62 whichever is earlier.
Assistive Bodies in RBI:-
There are two assistive bodies for Central Board of Directors viz. Board of Financial Supervision (BFS) and the Board for Payment and Settlement Systems (BPSS). Both of these are chaired by RBI Governor.
Local Boards:-
There are four local boards of RBI located in Chennai, Kolkata, Mumbai and New Delhi. These four local boards represent four regions of the country. Members and directors of local boards are appointed by the central government for four-year terms. Each of these local boards consists of 5 members who represent regional interests, and the interests of co-operative and indigenous banks.
Departments of RBI:-
Reserve Bank of India has 33 Departments which Focuses on Policy Issues in the Reserve Banks Functional areas and Internal Operations. These are as Follows:-
| Consumer Education and Protection Department | Corporate Strategy and Budget Department |
| Department of Banking Regulation | Department of Banking Supervision |
| Department of Communication | Department of Cooperative Bank Regulation |
| Department of Cooperative Bank Supervision | Department of Corporate Services |
| Department of Currency Management | Department of Economic and Policy Research |
| Department of External Investments and Operations | Department of Government and Bank Accounts |
| Department of Information Technology | Department of Non-Banking Regulation |
| Department of Non-Banking Supervision | Department of Payment and Settlement Systems |
| Department of Statistics and Information Management | Financial Inclusion and Development Department |
| Financial Markets Operation Department | Financial Markets Regulations Department |
| Financial Stability Unit | Foreign Exchange Department |
| Human Resource Management Department | Inspection Department |
| Internal Debt Management Department | International Department |
| Legal Department | Monetary Policy Department |
| Premises Department | Rajbhasha Department |
| Risk Monitoring Department | Secretary’s Department |
| Central Vigilance Cell | - |
Regional and Sub-Offices of RBI:-
There were about 19 Regional offices and 09 Sub-offices of RBI. Most of the 19 Regional Offices are located at State Capitals.
Training Centers of RBI:-
- The Reserve Bank Staff College, Chennai.
- College of Agriculture Banking in Pune.
- Zonal Training Centers, Located at regional offices, Train Non-Executive Staff.
- Apart from that Following are RBI Funded Research Institutions.
- National Institute of Bank Management, Pune.
- Indira Gandhi Institute of Development Research, Mumbai.
- Institutions Development and Research in Banking Technology, Hyderabad.
RBIs Subsidiaries:-
- Deposit Insurance and Credit Gaurentee Corporation, DICGC.
- National Housing Bank.
- Bharatiya Reserve Bank Note Mudran Private Limited.
- NABARD.
Board of Financial Supervision(BFS):-
Board of financial supervision is one of the two assistive bodies of central Board of Directors of RBI, Other being a board for payment and settlement systems.
It was established in 1994 and its main function is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions, and non-banking finance companies. It is chaired by RBI Governor. One of the deputy governors of RBI serves as Vice Chairman BFS and it meets typically every month.
Functions of BFS:-
- Restructuring of the system of bank inspections
- Introduction of Off-site Surveillance,
- Strengthening of the role of the statutory and Strengthing of the internal defenses of Supervised institutions.
Board for Payment and Settlement Systems(BPSS):-
BPSS was established in 2005 to regulate and supervise the payment and settlement systems. It is one of the two assistive bodies to central board Directors in RBI. This is also chaired by the Governor of RBI and its members are all the four Deputy Governors and two Non-Official Directors of the Central Board.
Key Functions of BPSS:-
- Lay down policies relating to the regulation and supervision of all types of payments and Settlement systems.
- Set standards for existing and Future Systems.
- Approve Criteria for Authorization of payment and settlement systems.
- Determine Criteria for membership to these systems, including Continuation, termination, and rejection of membership.
